US energy firms cut rigs for first time in six weeks, says Baker Hughes
XLE•US energy firms cut the total oil and gas rig count by one to 598 in the week to October 2, Baker Hughes said. The count was 49 rigs, or 9%, above the same time last year.
1. Rig count declines
The total US oil and gas rig count fell by one to 598 in the week to October 2, its lowest since mid-September. Oil rigs rose by one to 456, their highest since May 2025, while gas rigs fell by two to 133; miscellaneous rigs held at nine.
2. Output outlook
The rig count had declined by 7% in 2025, 5% in 2024 and 20% in 2023 as lower US oil prices led energy firms to focus more on shareholder returns and debt repayment than on increasing output. Spot US West Texas Intermediate crude prices are expected to rise in 2026 for the first time in four years because of supply disruptions from the Iran war.
3. EIA projections
The EIA projected crude output would increase from a record 13.7 million barrels per day in 2025 to 13.8 million in 2026. It projected natural gas output would rise from a record 107.6 billion cubic feet per day in 2025 to 111.7 billion in 2026, as demand grows for electricity generation and LNG exports.
